Designing an IVR Your Customers Will Love: Practical Tips and Strategies

In two previous posts – What is a Call Center IVR System and Why Your Organization Needs One and 11 IVR Problems That Drive Customers Away (And How to Fix Them) – we referenced two statistics that seem to be at odds with each other. 

First, we uncovered that 81% of customers say they would like to solve problems on their own using self-service options before contacting a live agent. 

While customers clearly value self-service, they’re not exactly in love with IVRs. In fact, 61% of customers believe IVRs actively contribute to a poor experience. 

This contradiction raises some intriguing questions:  

• How can something customers clearly want also be something they overwhelmingly dislike?  
• Is it the technology itself that frustrates them, or is it the way businesses are implementing it?  
• Are IVRs falling short of their potential because of outdated practices, or is there a deeper disconnect between what customers expect and what they experience?  
• And most importantly, what can businesses do to bridge this gap and turn IVRs from a pain point into a tool for customer satisfaction? 

The answer lies in execution. Customers want self-service systems that work for them—fast, intuitive, and helpful. But when IVRs are poorly designed, they become a source of frustration rather than a solution. Endless menus, unclear prompts, and no easy way to reach a live agent leave customers feeling stuck and ignored. 

This blog will dive into how businesses can resolve this paradox, building IVRs that align with customer expectations while avoiding the pitfalls that produce dissatisfaction. By understanding the psychology of waiting, designing smarter routing strategies, and focusing on usability, you can create an IVR call center customers will not just use, but actually appreciate. 

Understanding the Psychology of Waiting

For many customers, waiting on hold can feel interminable, even when the actual wait time is relatively short. This disconnect between perceived and actual time is one of the key reasons customers abandon calls, especially when faced with unclear routing options or no updates about their position in the queue.  

To solve this, businesses must understand the psychology of waiting—and how to turn it to their advantage. 

The Role of Perception in Hold Times 

Research consistently shows that callers overestimate how long they’ve been waiting, particularly when left in silence. The phenomenon is rooted in our brains’ natural tendency to focus on time passing when there’s nothing else to occupy our attention. Adding even basic queue announcements, like estimated wait times or progress updates, can significantly reduce the frustration customers feel during a wait. 

This principle was first harnessed over 60 years ago by Alfred Levy, a factory owner, inventor, and entrepreneur, who discovered music on hold almost by accident.  

In 1962, Levy noticed a problem with his factory’s phone lines: a loose wire had come into contact with a metal girder in the building, effectively turning the entire structure into a receiver. The result? A nearby radio station’s audio signal could be heard through the phone line when calls were placed on hold.  

Realizing the potential of this serendipitous discovery, Levy patented his invention in 1966, officially creating the technology we now know as music on hold. His innovation didn’t just solve the immediate problem at his factory—it laid the foundation for one of the most ubiquitous tools in customer service today. 

Over the decades, Levy’s simple insight evolved into a powerful strategy for managing customer perceptions during hold times. Today, businesses can take that concept even further with customized audio, progress announcements, and callback options. 

Case Study: Quacking Ducks and Customer Engagement 

Sometimes, it’s the most unexpected elements that capture a customer’s attention. 

In 2000, National Discount Brokers (NDB) included an option to hear a quacking sound—an homage to its duck mascot—in its IVR menu. To their surprise, 475,000 callers pressed the option in a single day just to hear the quack, resulting in a massive 75% surge in new brokerage accounts. 

While quirky features like this aren’t a universal solution, the case highlights a broader principle: engaging, unexpected features can positively shape how customers perceive waiting time and even drive business outcomes. 

IVR Best Practice Guidelines

If you’re looking to improve the waiting experience in your IVR system, here’s how you can start: 

• Set Clear Expectations: Follow the industry benchmark of answering 80% of calls within 20 seconds, known as the 80/20 rule. For longer waits, provide regular updates such as “You are third in line.” 
• Offer Callbacks: Callback options allow customers to opt out of waiting entirely, giving them more control over their time and reducing overall frustration. 
• Use Engaging Content: Replace repetitive hold music with something customers will appreciate, such as tailored messages, progress updates, or even lighthearted touches like NDB’s duck quack. 
• Minimize Perceived Wait Times: Studies show that distracting customers with relevant content can reduce perceived wait times by up to 33%. Silence, on the other hand, increases perceived time by 36%. 

Waiting is unavoidable in many call scenarios, but by leveraging psychological insights, adding creative touches, and offering proactive solutions like callbacks, businesses can turn hold time from a pain point into an opportunity to create a better customer experience. 

10 Must-Have Features for a Customer-Friendly IVR System 

A well-designed contact center IVR system can make a world of difference for both your customers and your business. By focusing on ease of use and customer satisfaction, you can create an IVR that feels like a helpful tool—not a frustrating roadblock. Here are the top features to include in your system.

1. Keep Menus Short and Sweet 

No one wants to listen to a laundry list of options. Stick to five or six clear, distinct choices in the main menu to help callers quickly find what they need. 

2. Allow Callbacks Instead of Waiting 

Give customers the option to request a callback instead of staying on hold. This flexibility respects their time and reduces frustration, especially during high-traffic periods. 

3. Make It Easy to Reach a Real Person 

Sometimes, people just need to talk to a human. Include a simple and obvious option to connect with a live agent for complex or sensitive issues. 

4. Speak Their Language 

If you serve a diverse audience, offer multiple language options right at the start of the call. It’s a small detail that makes a big difference in accessibility. 

5. Highlight Popular Options First 

Know what your customers are calling about most often? Put those options front and center in your menu. This saves time and helps callers feel like you “get” them. 

6. Skip the Small Talk 

If your IVR allows custom routing rules, you can allow repeat or VIP customers to bypass the menus entirely and go straight to their destination. Respecting their time will keep them happy. 

7. Use a Friendly Voice 

Nobody likes talking to a robot. Use natural, human-sounding voices for your prompts to create a warm and professional impression. 

8. Switch Up the Hold Music 

Endlessly looping the same track can drive anyone up the wall. Choose varied, calming hold music to make wait times feel shorter. 

9. Make It Personal 

Whenever possible, greet customers by name or mention their recent interactions. It’s a simple way to show you value them. 

10. Empower Customers with Self-Service Options 

Let callers handle common tasks—like checking balances or booking appointments—on their own. It’s faster for them and frees up your team for more complex issues. 

Smart Routing Strategies: Enhancing IVR Efficiency and Customer Experience 

One of the keys to a successful IVR system is the implementation of smart routing strategies. By focusing on intelligent call handling, businesses can improve efficiency, reduce customer frustration, and create a smoother overall experience. Here are some proven strategies for making your IVR routing smarter and more customer-friendly: 

Personalizing Call Routing

When customers call, they expect to be treated as individuals. Personalizing call routing using customer relationship management (CRM) systems and artificial intelligence (AI) can make a huge difference.

CRM integrations allow you to route calls based on the caller’s previous interactions, service history, or recent purchases. Meanwhile, AI can predict customer needs and direct them to the most relevant department or agent.

Example: A frequent caller who recently placed an order online could be routed directly to their account manager, bypassing unnecessary menus and saving time. 

Routing Calls Based on Location

For businesses with a regional or local presence, location-based routing ensures customers are connected to the nearest branch or a region-specific support team. This approach not only improves resolution times but also supports geographically targeted promotions or events. 

Example: A restaurant chain can automatically route customers to the closest location for reservations or catering inquiries, instead of requiring them to manually choose their location. 

Reducing Repetition for Callers

Few things frustrate customers more than having to repeat themselves. To address this, businesses should design workflows that pass along data collected in the IVR—such as account numbers or issue descriptions—directly to the agent. Additionally, workflows should aim to accurately route calls the first time, reducing the need for unnecessary transfers. 

Example: A customer entering their account number through the IVR is seamlessly connected to the billing department, where the agent already has their details preloaded and ready to go. 

Routing Based on Caller Intent

Understanding why a customer is calling—and routing them accordingly—is a game-changer for customer satisfaction. Natural language processing (NLP) tools enable IVR systems to detect a caller’s intent based on what they say, ensuring they are directed to the right resource quickly and efficiently. 

Example: A customer saying “I’d like to return an item” is routed directly to the returns department, bypassing generic menus and unnecessary steps. 

Assigning Calls to Skilled Agents

Not all customer issues are the same, and neither are agents’ skill sets. Skills-based routing assigns calls to agents based on their expertise, such as technical knowledge, product specialization, or language fluency. This ensures customers are connected with the right person the first time, improving resolution rates and overall satisfaction. 

Example: A customer requesting Spanish-language support is seamlessly connected to a bilingual agent, eliminating delays and potential misunderstandings. 

Prioritizing VIP Customers

High-value customers or loyalty program members expect—and deserve—priority treatment. Smart routing can place these callers into dedicated queues, where they receive faster service and more personalized support. Adding a layer of CRM-driven prompts can further enhance the VIP experience by acknowledging their loyalty or recent activity. 

Example: A Platinum-tier loyalty member is greeted by name and routed directly to a senior support agent, reinforcing their value to the business. 

Turning IVR Frustration into Customer Delight

Creating an IVR system that customers genuinely appreciate may seem like a challenge, but as we’ve shown, it’s entirely within reach when approached thoughtfully. By addressing common frustrations—like unclear menus, long waits, or repetitive interactions—and focusing on smart, customer-first design principles, you can transform the IVR experience into something positive and productive. 

For many businesses, the IVR is more than just a call-routing tool; it’s the gateway to customer service. When crafted with empathy, purpose, and precision, an IVR can do more than solve problems—it can set the tone for your brand’s relationship with its customers.

The key takeaway? Focus on your customers’ needs. Keep menus simple, provide personalized options, and ensure that every step of the IVR journey—whether it’s navigating menus, waiting on hold, or getting routed to an agent—feels intuitive and effortless. 

In the next post, “Implementing the Perfect IVR System,” we’ll talk about the details of actually implementing the IVR you’ve designed.